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An Act relating to the regulation of activities and institutions in the securities and derivatives industry, including leveraged foreign exchange trading, of financial benchmarks and of clearing facilities, and for matters connected therewith.

1st October 2002: Parts II to VII, XI and XII, section 314 and Third Schedule ]

PART I

PRELIMINARY

Short title

1. This Act may be cited as the Securities and Futures Act.

Interpretation

2.—(1) In this Act, unless the context otherwise requires —

“administering a designated benchmark” means —

(a)

controlling the development of the definition of a designated benchmark for the purpose of determining a designated benchmark;

(b)

controlling the development of the methodology of determining a designated benchmark;

(c)

controlling the review of the definition of a designated benchmark for the purpose of determining a designated benchmark;

(d)

controlling the review of the methodology of determining a designated benchmark;

(e)

managing any arrangements, processes or mechanisms for the purpose of determining a designated benchmark;

(f)

collecting, analysing or processing any information or expression of opinion for the purpose of determining a designated benchmark;

(g)

applying a formula or other methods of calculation to information or expressions of opinion in order to determine a designated benchmark; or

(h)

monitoring and conducting surveillance of any information or expressions of opinion provided for the purpose of determining a designated benchmark,

but does not include providing information in relation to a designated benchmark or any act that is necessary or incidental to providing such information;

[Act 4 of 2017 wef 08/10/2018]

“administering a financial benchmark” means —

(a)

controlling the development of the definition of a financial benchmark for the purpose of determining a financial benchmark;

(b)

controlling the development of the methodology of determining a financial benchmark;

(c)

controlling the review of the definition of a financial benchmark for the purpose of determining a financial benchmark;

(d)

controlling the review of the methodology of determining a financial benchmark;

(e)

managing any arrangements, processes or mechanisms for the purpose of determining a financial benchmark;

(f)

collecting, analysing or processing any information or expression of opinion for the purpose of determining a financial benchmark;

(g)

applying a formula or other methods of calculation to information or expressions of opinion in order to determine a financial benchmark; or

(h)

monitoring and conducting surveillance of any information or expressions of opinion provided for the purpose of determining a financial benchmark,

but does not include providing information in relation to a financial benchmark or any act that is necessary or incidental to providing such information;

[Act 4 of 2017 wef 08/10/2018]

“advising on corporate finance” has the meaning given to it in the Second Schedule;

“advocate and solicitor” means an advocate and solicitor of the Supreme Court or a foreign lawyer as defined in section 2(1) of the Legal Profession Act (Cap. 161);

[Act 34 of 2012 wef 18/03/2013]

“appointed representative”, in respect of a type of regulated activity, has the meaning given to that expression in section 99D, and “appointed representative” means an appointed representative in respect of any type of regulated activity;

[2/2009 wef 26/11/2010]

“approved clearing house” means a corporation that is approved by the Authority under section 51(1)(a) as an approved clearing house;

[Act 34 of 2012 wef 01/08/2013]

“approved exchange” means a corporation that is approved by the Authority under section 8(1) as an approved exchange;

“approved holding company” means a corporation that is approved by the Authority under section 81W as an approved holding company;

“auditor” means a public accountant who is registered or deemed to be registered under the Accountants Act (Cap. 2) and, in Divisions 1 and 1A of Part XIII, when used in relation to an entity not being a company, includes —

(a)

a person who is duly registered, licensed, approved or otherwise authorised to practise as an auditor (such practice to include the issue of any opinion, report or other document on the audit of any financial statement) —

(i)

under the laws of the place where the entity is formed or constituted; or

(ii)

under the laws of the place of his practice, if the auditing standards that are or will be applied to the financial statements of the entity are —

(A)

auditing standards commonly applied in that place; or

(B)

international auditing standards (by whatever name called); or

(b)

such other person as may be approved by the Authority in any particular case to be an auditor for such entity;

“authorised benchmark administrator” means a corporation that is authorised by the Authority under section 123F(1) as an authorised benchmark administrator;

[Act 4 of 2017 wef 08/10/2018]

“authorised benchmark submitter” means a corporation that is authorised by the Authority under section 123ZE(1) as an authorised benchmark submitter;

[Act 4 of 2017 wef 08/10/2018]

“Authority” means the Monetary Authority of Singapore established under the Monetary Authority of Singapore Act (Cap. 186);

“book” includes any record, register, document or other record of information, and any account or accounting record, however compiled, recorded or stored, whether in written or printed form or on microfilm or in any other electronic form or otherwise;

“business rules”, in relation to an approved holding company, an approved exchange, a recognised market operator, a licensed trade repository, a licensed foreign trade repository, an approved clearing house or a recognised clearing house, means the rules, regulations, by-laws or such similar body of statements, by whatever name called, that govern the activities and conduct of —

(a)

the approved holding company, approved exchange, recognised market operator, approved clearing house or recognised clearing house and its members, or the licensed trade repository or licensed foreign trade repository and its participants; and

(b)

other persons in relation to it,

whether or not those rules, regulations, by-laws or similar body of statements are made by the approved holding company, approved exchange, recognised market operator, licensed trade repository, licensed foreign trade repository, approved clearing house or recognised clearing house or are contained in its constituent documents; but does not include the listing rules of an approved exchange or a recognised market operator (which is an overseas exchange);

[Act 34 of 2012 wef 01/08/2013]

[Act 4 of 2017 wef 08/10/2018]

“business trust” has the same meaning as in section 2 of the Business Trusts Act (Cap. 31A);

“capital markets products” means any securities, units in a collective investment scheme, derivatives contracts, spot foreign exchange contracts for the purposes of leveraged foreign exchange trading, and such other products as the Authority may prescribe as capital markets products;

[Act 4 of 2017 wef 08/10/2018]

“capital markets services licence” means a licence that is granted by the Authority under section 86 to a person to carry on a business in any regulated activity;

“chairman” means a chairman of a board of directors;

“chief executive officer”, in relation to an approved exchange, a recognised market operator, a licensed trade repository, a licensed foreign trade repository, an approved clearing house, a recognised clearing house, an approved holding company, the holder of a capital markets services licence, an authorised benchmark administrator, an authorised benchmark submitter, a designated benchmark submitter or any other corporation (called in this definition a relevant person) means any person, by whatever name called, who is —

(a)

in the direct employment of, or acting for or by arrangement with, the relevant person; and

(b)

principally responsible for the management and conduct of the business of the relevant person in Singapore;

[Act 4 of 2017 wef 08/10/2018]

“clearing facility” has the meaning given to it in Part II of the First Schedule;

“clearing or settlement” has the meaning given to it in Part II of the First Schedule;

“closed-end fund” means an arrangement referred to in paragraph (a) or (b) of the definition of “collective investment scheme” under which units that are issued are exclusively or primarily non-redeemable at the election of the holders of units, but does not include —

(a)

an arrangement referred to in paragraph (a) of that definition —

(i)

which is a trust;

(ii)

which invests primarily in real estate and real estate-related assets specified by the Authority in the Code on Collective Investment Schemes; and

(iii)

all or any units of which are listed for quotation on an approved exchange;

[Act 4 of 2017 wef 08/10/2018]

(aa)

an arrangement mentioned in paragraph (a) of that definition which —

(i)

has all of the following characteristics:

(A)

the arrangement is constituted in the form of an entity or as a trust on or after 1 July 2013;

(B)

under the investment policy of the arrangement, investments are made for the purpose of giving participants in the arrangement the benefit of the results of the investments of the arrangement;

(C)

the arrangement does not carry on any business other than investment business and does not carry on any activity other than any activity that is solely incidental to the investment business; and

(ii)

has at least one of the following characteristics:

(A)

the investment policy of the arrangement is clearly set out in a document that is provided to each participant in the arrangement before, or at the time, the participant first invests in the arrangement;

(B)

the entity or trust of which the arrangement is constituted is contractually bound to every participant in the arrangement to comply with the investment policy of the arrangement, as may be amended from time to time;

(C)

the investment policy of the arrangement sets out the types of property which the arrangement is authorised to invest in, and the investment guidelines or restrictions that apply to the arrangement; or

[Act 4 of 2017 wef 08/10/2018]

(b)

an arrangement referred to in paragraph (a) of that definition which is, or which belongs to a class or description of arrangements which is, specified by the Authority, by notification published in the Gazette, to be an arrangement that is not a closed-end fund, or a class or description of arrangements that are not closed-end funds, as the case may be;

[Act 34 of 2012 wef 18/03/2013]

“Code on Collective Investment Schemes” means the Code on Collective Investment Schemes referred to in section 284 which is issued by the Authority under section 321(1);

“collective investment scheme” means —

(a)

an arrangement in respect of any property —

(i)

under which the participants do not have day-to-day control over the management of the property, whether or not the participants have the right to be consulted or to give directions in respect of such management;

(ii)

under which either or both of the following characteristics are present:

(A)

the property is managed as a whole by or on behalf of a manager;

(B)

the contributions of the participants, and the profits or income out of which payments are to be made to the participants, are pooled; and

(iii)

under which either or both of the following characteristics are present:

(A)

the effect of the arrangement is to enable the participants (whether by acquiring any right, interest, title or benefit in the property or any part of the property or otherwise) —

(AA)

to participate in or receive profits, income, or other payments or returns arising from the acquisition, holding, management, disposal, exercise, redemption or expiry of, any right, interest, title or benefit in the property or any part of the property; or

(AB)

to receive sums paid out of such profits, income, or other payments or returns;

(B)

the purpose, purported purpose or purported effect of the arrangement is to enable the participants (whether by acquiring any right, interest, title or benefit in the property or any part of the property or otherwise) —

(BA)

to participate in or receive profits, income, or other payments or returns arising from the acquisition, holding, management, disposal, exercise, redemption or expiry of, any right, interest, title or benefit in the property or any part of the property; or

(BB)

to receive sums paid out of such profits, income, or other payments or returns,

whether or not —

(I)

the arrangement provides for the participants to receive any benefit other than those set out in sub-paragraph (BA) or (BB) in the event that the purpose, purported purpose or purported effect is not realised; or

(II)

the purpose, purported purpose or purported effect is realised; or

[Act 4 of 2017 wef 08/10/2018]

(b)

an arrangement which is an arrangement, or is of a class or description of arrangements, specified by the Authority as a collective investment scheme by notice published in the Gazette,

but does not include —

(i)

an arrangement operated by a person otherwise than by way of business;

(ii)

an arrangement under which each of the participants carries on a business other than investment business and enters into the arrangement solely incidental to that other business;

(iii)

an arrangement under which each of the participants is a related corporation of the manager;

(iv)

an arrangement made by or on behalf of an entity solely for the benefit of persons, each of whom is —

(A)

a bona fide director or equivalent person, a former director or equivalent person, a consultant, an adviser, an employee or a former employee of that entity or, where that entity is a corporation, a related corporation of that entity; or

(B)

a spouse, widow or widower, or a child, adopted child or step-child below the age of 18 years, of such director or equivalent person, former director or equivalent person, employee or former employee;

(iva)

an arrangement made by or on behalf of 2 or more entities solely for the benefit of persons, each of whom is —

(A)

a bona fide director or equivalent person, a former director or equivalent person, a consultant, an adviser, an employee or a former employee of any of those entities or, where any of those entities is a corporation, a related corporation of the entity which is a corporation; or

(B)

a spouse, widow or widower, or a child, adopted child or step-child below the age of 18 years, of such director or equivalent person, former director or equivalent person, employee or former employee;

(v)

a franchise;

(vi)

an arrangement under which money received by an advocate and solicitor from his client, whether as a stakeholder or otherwise, acting in his professional capacity in the ordinary course of his practice, or under which money is received by a statutory body as a stakeholder in the carrying out of its statutory functions;

(vii)

an arrangement made by any co-operative society registered under the Co-operative Societies Act (Cap. 62) in accordance with the objects thereof solely for the benefit of its members;

(viii)

an arrangement made for the purposes of any chit fund permitted to operate under the Chit Funds Act (Cap. 39);

(ix)

an arrangement arising out of a life policy within the meaning of the Insurance Act (Cap. 142);

(x)

a closed-end fund constituted either as an entity or a trust;

(xi)

an arrangement under which the whole amount of each participant’s contribution is a deposit as defined in section 4B of the Banking Act (Cap. 19);

(xia)

an arrangement of which —

(A)

the predominant purpose is to enable the participants to share in the use or enjoyment of the property or to make its use or enjoyment available gratuitously to others; and

(B)

the property does not consist of any of the following:

(BA)

any currency of any country or territory;

(BB)

any capital markets products;

(BC)

any policy as defined in the First Schedule to the Insurance Act (Cap. 142);

(BD)

any deposit as defined in section 4B of the Banking Act (Cap. 19);

(BE)

any credit facilities as defined in section 2(1) of the Banking Act;

[Act 4 of 2017 wef 08/10/2018]

(xii)

an arrangement which is an arrangement, or is of a class or description of arrangements, specified by the Authority as not constituting a collective investment scheme by notice published in the Gazette;

“commodity” means —

(a)

any produce, item, goods or article;

(b)

any index, right or interest in any produce, item, goods or article; or

(c)

any index, right, interest, tangible property or intangible property of any nature that is, or belongs to a class of indices, rights, interests, tangible properties or intangible properties that is, prescribed for the purposes of this definition,

but does not include —

(i)

any produce, item, goods or article that is, or that belongs to a class of produce, items, goods or articles that is, prescribed not to be a commodity for the purposes of this definition; or

(ii)

any index, right or interest in any produce, item, goods or article that is, or that belongs to a class of indices, rights or interests that is, prescribed not to be a commodity for the purposes of this definition;

[Act 4 of 2017 wef 08/10/2018]

“company” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);

a firm, a limited liability partnership or a corporation in which the individual or any of the persons mentioned in sub-paragraph (i) has control of not less than 20% of the voting power in the firm, limited liability partnership or corporation, whether such control is exercised individually or jointly; or

(b)

a firm, a limited liability partnership or a corporation, means another firm, limited liability partnership or corporation in which the first-mentioned firm, limited liability partnership or corporation has control of not less than 20% of the voting power in that other firm, limited liability partnership or corporation,

and a reference in this Act to a person connected to another person shall be construed accordingly;

“corporation” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);

“customer” means —

(a)

in relation to a holder of a capital markets services licence —

(i)

for the purposes of Parts IV, VI, VII and XV, a person on whose behalf the holder carries on or will carry on any regulated activity; or

(ii)

for the purposes of Part V —

(A)

a person on whose behalf the holder carries on or will carry on any regulated activity; or

(B)

any other person with whom the holder, as principal, enters or will enter into transactions for the sale or purchase of capital markets products,

but does not include such person or class of persons as may be prescribed for the purposes of this sub-paragraph; or

[Act 4 of 2017 wef 08/10/2018]

(b)

for the purposes of Part III and the definition of “user”, a person on whose behalf a member of an approved exchange, an approved clearing house, a recognised clearing house or a recognised market operator, as the case may be, carries on any activity regulated under this Act, but does not include —

(i)

the member, with respect to dealings for the member’s own account;

(ii)

any officer, director, employee or representative of the member; or

(iii)

a related corporation of the member, with respect to accepted instructions to deal for an account belonging to, and maintained wholly for the benefit of, that related corporation;

[2/2009 wef 29/03/2010]

[Act 34 of 2012 wef 01/08/2013]

[Act 4 of 2017 wef 08/10/2018]

[Deleted by Act 4/2017 wef 08/10/2018]

“dealing in capital markets products” has the meaning given to it in the Second Schedule;

[Act 4 of 2017 wef 08/10/2018]

“debenture” includes —

(a)

any debenture stock, bond, note and any other debt securities issued by or proposed to be issued by a corporation or any other entity, whether constituting a charge or not, on the assets of the issuer;

(b)

any debenture stock, bond, note and any other debt securities issued by or proposed to be issued by a trustee-manager of a business trust in its capacity as trustee-manager of the business trust, or a trustee of a real estate investment trust in its capacity as trustee of the real estate investment trust, whether constituting a charge or not, on the assets of the business trust or real estate investment trust; or

(c)

such other product or class of products as the Authority may prescribe,

but does not include —

(i)

a cheque, letter of credit, order for the payment of money or bill of exchange; or

(ii)

for the purposes of the application of this definition to a provision of this Act in respect of which any regulations made under that provision provide that the word “debenture” does not include a prescribed document or a document included in a prescribed class of documents, that document or a document included in that class of documents, as the case may be;

[Act 4 of 2017 wef 08/10/2018]

“defalcation” means misapplication, including misappropriation, of any property;

“derivative”, in relation to a unit in a business trust, has the same meaning as in section 2 of the Business Trusts Act (Cap. 31A);

“derivatives contract” means —

(a)

any contract or arrangement under which —

(i)

a party to the contract or arrangement is required to, or may be required to, discharge all or any of its obligations under the contract or arrangement at some future time; and

(ii)

the value of the contract or arrangement is determined (whether directly or indirectly, or whether wholly or in part) by reference to, is derived from, or varies by reference to, either of the following:

(A)

the value or amount of one or more underlying things;

(B)

fluctuations in the values or amounts of one or more underlying things; or

(b)

any contract or arrangement that is, or that belongs to a class of contracts or arrangements that is, prescribed to be a derivatives contract,

but does not include —

(i)

securities;

(ii)

any unit in a collective investment scheme;

(iii)

a spot contract;

(iv)

a deposit as defined in section 4B of the Banking Act (Cap. 19), where the deposit is accepted by a bank licensed under that Act or a merchant bank approved as a financial institution under the Monetary Authority of Singapore Act (Cap. 186);

(v)

a deposit as defined in section 2 of the Finance Companies Act (Cap. 108), where the deposit is accepted by a finance company as defined in that section of that Act;

(vi)

any contract of insurance in relation to any class of insurance business specified in section 2(1) of the Insurance Act (Cap. 142); or

(vii)

any contract or arrangement that is, or that belongs to a class of contracts or arrangements that is, prescribed not to be a derivatives contract;

[Act 4 of 2017 wef 08/10/2018]

“designated benchmark” means a financial benchmark that is designated by the Authority under section 123B to be a designated benchmark;

[Act 4 of 2017 wef 08/10/2018]

“designated benchmark submitter” means a corporation that is designated by the Authority under section 123ZI(1) to be a designated benchmark submitter;

[Act 4 of 2017 wef 08/10/2018]

[Deleted by Act 34 of 2012 wef 01/08/2013]

“director” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);

“entity” includes a corporation, an unincorporated association, a partnership and the government of any state, but does not include a trust;

“exchange-traded derivatives contract” means a derivatives contract —

(a)

that is executed on an organised market and is or will be cleared or settled by a clearing facility under an arrangement, process, mechanism or service by which the parties to the derivatives contract substitute or will substitute, through novation or otherwise, the credit of the clearing facility for the credit of the parties to the derivatives contract; and

(b)

the contractual terms (other than price) of which —

(i)

are in the same form as the contractual terms of other derivatives contracts of the same type that are executed on the organised market on which the derivatives contract is executed; and

(ii)

conform to a standard that is provided under the business rules or practices of the organised market on which the derivatives contract is executed,

but does not include —

(A)

any contract under which every contractual term can be negotiated; or

(B)

any derivatives contract that is, or that belongs to a class of derivatives contracts that is, prescribed not to be an exchange-traded derivatives contract;

[Act 4 of 2017 wef 08/10/2018]

“executive officer”, in relation to an approved exchange, a recognised market operator, a licensed trade repository, a licensed foreign trade repository, an approved clearing house, a recognised clearing house, an approved holding company, the holder of a capital markets services licence, an authorised benchmark administrator, an authorised benchmark submitter, a designated benchmark submitter or any other corporation (called in this definition a relevant person), means any person, by whatever name called, who is —

(a)

in the direct employment of, or acting for or by arrangement with, the relevant person; and

(b)

concerned with or takes part in the management of the relevant person on a day-to-day basis;

[Act 4 of 2017 wef 08/10/2018]

[Deleted by Act 4/2017 wef 08/10/2018]

“exempt benchmark administrator” means a person who is exempted under section 123K(1) from the requirement to be an authorised benchmark administrator;

[Act 4 of 2017 wef 08/10/2018]

“exempt benchmark submitter” means a person who is exempted under section 123ZH(1) from the requirement to be an authorised benchmark submitter;

[Act 4 of 2017 wef 08/10/2018]

“exempt person” means a person who is exempted under section 99;

“financial benchmark” means —

(a)

any price, rate, index or value that is —

(i)

determined periodically by the application (whether direct or indirect) of a formula or any other method of calculation to information or expressions of opinion concerning transactions in, or the state of, the market in respect of one or more underlying things;

(ii)

made available to the public (whether free of charge or for payment); and

(iii)

used for reference —

(A)

to determine the interest payable or other sums due on deposits or credit facilities;

(B)

to determine the price or value of any investment product as defined in section 2(1) of the Financial Advisers Act (Cap. 110); or

(C)

to measure the performance of any product offered by a person who is, or who belongs to a class of persons which is, prescribed by regulations made under section 341; or

(b)

such other price, rate, index or value as may be prescribed by regulations made under section 341 as a financial benchmark,

but does not include —

(i)

a price, rate, index or value determined by, or on behalf of, the Government or a statutory body established under any Act, unless that price, rate, index or value is prescribed as a financial benchmark;

(ii)

a price, rate, index or value determined by a person which is intended to be for the person’s exclusive use in transactions or agreements entered into, or to be entered into, by the person, unless that price, rate, index or value is prescribed as a financial benchmark;

(iii)

the price of a capital markets product; or

(iv)

such other price, rate, index or value as may be prescribed by regulations made under section 341 as not being a financial benchmark;

[Act 4 of 2017 wef 08/10/2018]

“financial instrument” includes any currency, currency index, interest rate, interest rate instrument, interest rate index, securities, securities index, a group or groups of such financial instruments, and any other thing that is prescribed by the Authority by regulations made under section 341 for the purposes of this definition;

[Act 34 of 2012 wef 01/08/2013]

[Act 4 of 2017 wef 08/10/2018]

“financial year” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);

“firm” has the same meaning as in section 2(1) of the Business Names Registration Act 2014;

[Act 29 of 2014 wef 03/01/2016]

“foreign company” has the same meaning as in section 4(1) of the Companies Act;

[Deleted by Act 4/2017 wef 08/10/2018]

[Deleted by Act 4/2017 wef 08/10/2018]

“franchise” means a written agreement or arrangement between 2 or more persons by which —

(a)

a party (referred to in this definition as the franchisor) to the agreement or arrangement authorises or permits another party (referred to in this definition as the franchisee), or a person associated with the franchisee, to exercise the right to engage in the business of offering, selling or distributing goods or services in Singapore under a plan or system controlled by the franchisor or a person associated with the franchisor;

(b)

the business carried on by the franchisee or the person associated with the franchisee, as the case may be, is capable of being identified by the public as being substantially associated with a trade or service mark, logo, symbol or name identifying, commonly connected with or controlled by the franchisor or a person associated with the franchisor;

(c)

the franchisor exerts, or has authority to exert, a significant degree of control over the method or manner of operation of the franchisee’s business;

(d)

the franchisee or a person associated with the franchisee is required under the agreement or arrangement to make payment or give some other form of consideration to the franchisor or a person associated with the franchisor; and

(e)

the franchisor agrees to communicate to the franchisee, or a person associated with the franchisee, knowledge, experience, expertise, know-how, trade secrets or other information whether or not it is proprietary or confidential;

“fund management” has the meaning given to it in the Second Schedule;

“futures contract” means —

(a)

an exchange-traded derivatives contract under which —

(i)

one party agrees to transfer title to an underlying thing, or a specified quantity of an underlying thing, to another party at a specified future time and at a specified price payable at that future time; or

(ii)

the parties will discharge their obligations under the contract by settling the difference between the value of a specified quantity of an underlying thing agreed at the time of the making of the contract and at a specified future time; or

(b)

an exchange-traded derivatives contract which is an option on an exchange-traded derivatives contract mentioned in paragraph (a);

[Act 4 of 2017 wef 08/10/2018]

[Deleted by Act 4/2017 wef 08/10/2018]

[Deleted by Act 4/2017 wef 08/10/2018]

[Deleted by Act 4/2017 wef 08/10/2018]

“holding company” has the same meaning as in section 5(4) of the Companies Act (Cap. 50);

“leveraged foreign exchange trading” has the meaning given to it in the Second Schedule;

[Deleted by Act 2/2009 wef 26/11/2010]

“licensed foreign trade repository” means a corporation that has in force a foreign trade repository licence granted by the Authority under section 46E(2);

[Act 34 of 2012 wef 01/08/2013]

[Deleted by Act 2/2009 wef 26/11/2010]

“licensed trade repository” means a corporation that has in force a trade repository licence granted by the Authority under section 46E(1);

[Act 34 of 2012 wef 01/08/2013]

“limited liability partnership” has the same meaning as in section 2(1) of the Limited Liability Partnerships Act 2005 (Act 5 of 2005);

“listing rules”, in relation to a corporation that establishes or operates, or proposes to establish or operate, an organised market of an approved exchange or a recognised market operator, or an overseas exchange that establishes or operates or proposes to establish or operate an organised market of a recognised market operator, means rules governing or relating to —

(a)

the admission to the official list of the corporation or overseas exchange, of corporations, governments, bodies unincorporate or other persons for the purpose of the quotation on the organised market of the corporation or overseas exchange of securities, securities-based derivatives contracts or units in a collective investment scheme issued, or made available by such corporations, governments, bodies unincorporate or other persons, or the removal from that official list and for other purposes; or

(b)

the activities or conduct of corporations, governments, bodies unincorporate and other persons who are admitted to that list,

whether those rules are made —

(i)

by the corporation or overseas exchange, or are contained in any of the constituent documents of the corporation or overseas exchange; or

(ii)

by another person and adopted by the corporation or overseas exchange;

[Act 4 of 2017 wef 08/10/2018]

“manager”, in relation to a collective investment scheme, means a person, by whatever name called, who is responsible for managing the property of, or operating, the collective investment scheme;

[Deleted by Act 4/2017 wef 08/10/2018]

“member”, in relation to an approved exchange, a recognised market operator, an approved clearing house or a recognised clearing house, means a person who holds membership of any class or description in the approved exchange, recognised market operator, approved clearing house or recognised clearing house, whether or not he holds any share in the share capital of the approved exchange, recognised market operator, approved clearing house or recognised clearing house, as the case may be;

[Act 34 of 2012 wef 01/08/2013]

“newspaper” has the same meaning as in section 2 of the Newspaper and Printing Presses Act (Cap. 206);

“office copy” has the meaning given to it in section 4(1) of the Companies Act;

[Act 4 of 2017 wef 08/10/2018]

“officer” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);

[Deleted by Act 4/2017 wef 08/10/2018]

[Deleted by Act 4/2017 wef 08/10/2018]

[Deleted by Act 4/2017 wef 08/10/2018]

“organised market” has the meaning given to it in the First Schedule;

[Act 4 of 2017 wef 08/10/2018]

“overseas exchange” means a person operating an organised market outside Singapore that is regulated by a financial services regulatory authority of a country or territory other than Singapore;

[Act 4 of 2017 wef 08/10/2018]

“participant” means —

(a)

for the purposes of Part II, a person who may participate in one or more of the services provided by an approved exchange or a recognised market operator, in its capacity as an approved exchange, or a recognised market operator, as the case may be;

[Act 34 of 2012 wef 01/08/2013]

[Act 4 of 2017 wef 08/10/2018]

(aa)

for the purposes of Part IIA, a person who may participate in one or more of the services provided by a licensed trade repository or licensed foreign trade repository, in its capacity as a licensed trade repository or licensed foreign trade repository, as the case may be;

[Act 34 of 2012 wef 01/08/2013]

(b)

for the purposes of Part III, a person who, under the business rules of an approved clearing house or a recognised clearing house, may participate in one or more of the services provided by the approved clearing house or recognised clearing house, in its capacity as an approved clearing house or a recognised clearing house, as the case may be; or

[Act 34 of 2012 wef 01/08/2013]

(c)

for the purposes of any other provision of this Act, a person who participates in a collective investment scheme by way of owning one or more units in a collective investment scheme;

“partner” and “manager”, in relation to a limited liability partnership, have the respective meanings assigned to them in section 2(1) of the Limited Liability Partnerships Act 2005 (Act 5 of 2005);

“prescribed written law” means this Act or any of the following written laws:

(a)

Banking Act (Cap. 19);

(b)

Finance Companies Act (Cap. 108);

(c)

Financial Advisers Act (Cap. 110);

(d)

Insurance Act (Cap. 142);

(e)

Monetary Authority of Singapore Act (Cap. 186);

(f)

Money-changing and Remittance Businesses Act (Cap. 187); or

(g)

such other written law as the Authority may prescribe;

[Act 4 of 2017 wef 08/10/2018]

“principal”, in relation to a representative, means a person whom the representative is in the direct employment of, is acting for or is acting by arrangement with, and on behalf of whom the representative carries or will carry out any regulated activity;

[Act 34 of 2012 wef 18/03/2013]

“product financing” has the meaning given to it in the Second Schedule;

[Act 4 of 2017 wef 08/10/2018]

“providing credit rating services” has the meaning given to it in the Second Schedule;

[S 20/2012 wef 17/01/2012]

[Deleted by Act 4/2017 wef 08/10/2018]

“providing custodial services” has the meaning given to it in the Second Schedule;

[Act 4 of 2017 wef 08/10/2018]

“providing information in relation to a designated benchmark” means providing any information or expression of opinion —

(a)

to, or for the purpose of passing the information or expression of opinion on to, a person (A) administering a designated benchmark; and

(b)

that enables A to determine that designated benchmark;

[Act 4 of 2017 wef 08/10/2018]

“providing information in relation to a financial benchmark” means providing any information or expression of opinion —

(a)

to, or for the purpose of passing the information or expression of opinion on to, a person (A) administering a financial benchmark; and

(b)

that enables A to determine that financial benchmark;

[Act 4 of 2017 wef 08/10/2018]

“provisional representative”, in respect of a type of regulated activity, has the meaning given to that expression in section 99E, and “provisional representative” means a provisional representative in respect of any type of regulated activity;

[2/2009 wef 26/11/2010]

“public company” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);

“public register of representatives” means the register of that name under section 99C(3);

[2/2009 wef 26/11/2010]

“quote” means to display or provide, on an organised market of an approved exchange or a recognised market operator, information concerning the particular prices or particular consideration at which offers or invitations to sell, purchase or exchange securities, securities-based derivatives contracts or units in a collective investment scheme are made on that organised market, being offers or invitations that are intended or may reasonably be expected, to result, directly or indirectly, in the making or acceptance of offers to sell, purchase or exchange securities, securities-based derivatives contracts or units in a collective investment scheme;

[Act 4 of 2017 wef 08/10/2018]

“real estate investment trust”, except for the purposes of Division 3 of Part VII, means a collective investment scheme —

(a)

that is authorised under section 286 or recognised under section 287;

(b)

that is a trust;

(c)

that invests primarily in real estate and real estate-related assets specified by the Authority in the Code on Collective Investment Schemes; and

(d)

all or any units of which are listed for quotation on an approved exchange;

[Act 4 of 2017 wef 08/10/2018]

“real estate investment trust management” has the meaning given to it in the Second Schedule;

[S 376/2008 wef 01/08/2008]

“recognised business trust” means a business trust that is recognised by the Authority under section 239D(1);

[2/2009 wef 01/10/2012]

[Act 4 of 2017 wef 08/10/2018]

“recognised clearing house” mean a corporation that is recognised by the Authority under section 51(1)(b) or (2) as a recognised clearing house;

[Act 34 of 2012 wef 01/08/2013]

“recognised market operator” means a corporation that is recognised by the Authority under section 8(2) as a recognised market operator;

“record” means information that is inscribed, stored or otherwise fixed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form;

“registered business trust” has the same meaning as in section 2 of the Business Trusts Act (Cap. 31A);

“regulated activity” means an activity specified in the Second Schedule;

“related corporation” has the same meaning as in section 4(1) of the Companies Act;

“representative” —

(a)

in relation to a person (A) who carries on business in any regulated activity, except for the purposes of Part XIII and except as otherwise provided for in paragraphs (b) and (c) —

(i)

means a person (B), by whatever name called, in the direct employment of, or acting for, or by arrangement with A, who carries out for A any regulated activity (other than work ordinarily performed by accountants, clerks or cashiers), whether or not B is remunerated, and whether B’s remuneration, if any, is by way of salary, wages, commission or otherwise; and

(ii)

includes, where A is a corporation, any officer of A who performs for A any regulated activity, whether or not the officer is remunerated, and whether the officer’s remuneration, if any, is by way of salary, wages, commission or otherwise;

(b)

in relation to a person (C) that is an authorised benchmark administrator or an exempt benchmark administrator —

(i)

means a person (D), by whatever name called, in the direct employment of, or acting for, or by arrangement with C, who carries out the activity of administering a designated benchmark (other than work ordinarily performed by accountants, clerks or cashiers), whether or not D is remunerated, and whether D’s remuneration, if any, is by way of salary, wages, commission or otherwise; and

(ii)

includes, where C is a corporation, any officer of C who performs for C the activity of administering a designated benchmark, whether or not the officer is remunerated, and whether the officer’s remuneration, if any, is by way of salary, wages, commission or otherwise; and

(c)

in relation to a person (E) that is an authorised benchmark submitter, an exempt benchmark submitter or a designated benchmark submitter —

(i)

means a person (F), by whatever name called, in the direct employment of, or acting for, or by arrangement with E, who carries out the activity of providing information in relation to a designated benchmark (other than work ordinarily performed by accountants, clerks or cashiers), whether or not F is remunerated, and whether F’s remuneration, if any, is by way of salary, wages, commission or otherwise; and

(ii)

includes, where E is a corporation, any officer of E who performs for E the activity of providing information in relation to a designated benchmark, whether or not the officer is remunerated, and whether the officer’s remuneration, if any, is by way of salary, wages, commission or otherwise;

in the case of a scheme which is constituted as a corporation, the corporation; or

(b)

in the case of a scheme which is not constituted as a corporation, the manager for the scheme;

“securities” means —

(a)

shares, units in a business trust or any instrument conferring or representing a legal or beneficial ownership interest in a corporation, partnership or limited liability partnership;

(b)

debentures; or

(c)

any other product or class of products as may be prescribed,

but does not include —

(i)

any unit of a collective investment scheme;

(ii)

any bill of exchange;

(iii)

any certificate of deposit issued by a bank or finance company, whether situated in Singapore or elsewhere; or

(iv)

such other product or class of products as may be prescribed;

[Act 4 of 2017 wef 08/10/2018]

[Deleted by Act 4/2017 wef 08/10/2018]

[Deleted by Act 4/2017 wef 08/10/2018]

“securities-based derivatives contract” means any derivatives contract of which the underlying thing or any of the underlying things is a security or a securities index, but does not include any derivatives contract that is, or that belongs to a class of derivatives contracts that is, prescribed by regulations made under section 341;

[Act 4 of 2017 wef 08/10/2018]

“Securities Industry Council” means the Securities Industry Council referred to in section 138;

[Deleted by Act 4/2017 wef 08/10/2018]

“share” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);

“specified securities-based derivatives contract” means a securities-based derivatives contract that is not a futures contract;

[Act 4 of 2017 wef 08/10/2018]

“spot contract” means a contract or arrangement for the sale or purchase of any underlying thing at the spot price, where it is intended for a party to the contract or arrangement to take delivery of the underlying thing immediately or within a period which must not be longer than the period determined by the market convention for delivery of the underlying thing;

[Act 4 of 2017 wef 08/10/2018]

“spot foreign exchange contract” has the meaning given to it in the Second Schedule;

[Act 4 of 2017 wef 08/10/2018]

“subsidiary” has the same meaning as in section 5 of the Companies Act;

“substantial unitholder” —

(a)

in relation to a collective investment scheme, means a participant who has an interest or interests in one or more voting units in the scheme, the total votes attached to that unit, or those units, being not less than 5% of the total votes attached to all the voting units in the scheme; or

(b)

in relation to a business trust, means a person who has an interest or interests in one or more voting units in the business trust, the total votes attached to that unit, or those units, being not less than 5% of the total votes attached to all the voting units in the business trust;

[2/2009 wef 19/11/2012]

[Deleted by Act 4/2017 wef 08/10/2018]

“Take-over Code” means the Singapore Code on Take-overs and Mergers referred to in section 139 which is issued by the Authority under section 321(1);

“take-over offer” means —

(a)

an offer for the acquisition by or on behalf of a person of —

(i)

in the case of a public company, or of a corporation all or any of the shares of which are listed for quotation on an approved exchange —

(A)

some or all of the shares, or some or all of the shares of a particular class, in the company or corporation made to all members of the company or corporation, or where the person already holds shares in the company or corporation, made to all other members of the company or corporation; or

(B)

all of the remaining shares in the company or corporation made to all other members of the company or corporation as a result of the person acquiring or consolidating effective control of that company or corporation within the meaning of the Take-over Code;

[Act 4 of 2017 wef 08/10/2018]

(ii)

in the case of a registered business trust, or of a business trust all or any of the units of which are listed for quotation on an approved exchange —

(A)

some or all of the units, or some or all of the units of a particular class, in the business trust made to all unitholders of the business trust, or where the person already holds units in the business trust, made to all other unitholders of the business trust; or

(B)

all of the remaining units in the business trust made to all other unitholders of the business trust as a result of the person acquiring or consolidating effective control of that business trust within the meaning of the Take-over Code; or

[Act 4 of 2017 wef 08/10/2018]

(iii)

in the case of a collective investment scheme constituted as a unit trust and authorised under section 286, that invests primarily in real estate and real estate-related assets specified by the Authority in the Code on Collective Investment Schemes, and all or any of the units in which are listed for quotation on an approved exchange —

(A)

some or all of the units, or some or all of the units of a particular class, in the scheme made to all unitholders of the scheme, or where the person already holds units in the scheme, made to all other unitholders of the scheme; or

(B)

all of the remaining units in the scheme made to all other unitholders of the scheme as a result of the person acquiring or consolidating effective control of that scheme within the meaning of the Take-over Code; or

[2/2009 wef 29/07/2009]

[Act 4 of 2017 wef 08/10/2018]

(b)

a proposed compromise or arrangement which —

(i)

in the case of a public company, is referred to in section 210 of the Companies Act (Cap. 50); or

(ii)

in the case of a corporation all or any of the shares of which are listed for quotation on an approved exchange, complies with the laws, codes and other requirements (whether or not having the force of law) relating to take-overs, compromises and arrangements of the country or territory in which that corporation was incorporated,

and which, if executed, would result in a change in effective control of the public company or corporation within the meaning of the Take-over Code;

[Act 4 of 2017 wef 08/10/2018]

“temporary representative”, in respect of a type of regulated activity, has the meaning given to that expression in section 99F, and “temporary representative” means a temporary representative in respect of any type of regulated activity;

in relation to a company, has the same meaning as in section 4(1) of the Companies Act (Cap. 50); and

(b)

in relation to a corporation (other than a company), means any share equivalent to a treasury share in a company;

[2/2009 wef 19/11/2012]

“trustee-manager” —

(a)

in relation to a registered business trust, has the same meaning as in section 2 of the Business Trusts Act (Cap. 31A);

(b)

in relation to a business trust for which an application for registration has been made under section 4(1) of the Business Trusts Act, means the company proposed to be named as the trustee-manager in the application made under that section;

(c)

in relation to a recognised business trust, means the entity which manages and operates the recognised business trust, by whatever name called and whether incorporated or not; and

(d)

in relation to a business trust for which an application for recognition has been made under section 239D(1), means the entity proposed to be managing and operating the trust, by whatever name called and whether incorporated or not;

[2/2009 wef 19/11/2012]

[Act 4 of 2017 wef 08/10/2018]

“underlying thing” means —

(a)

in relation to a derivatives contract or a spot contract —

(i)

a unit in a collective investment scheme;

(ii)

a commodity;

(iii)

a financial instrument;

(iv)

the credit of any person; or

(v)

an arrangement, event, index, intangible property, tangible property or transaction that is, or that belongs to a class of arrangements, events, indices, intangible properties, tangible properties or transactions that is, prescribed by regulations made under section 341 to be an underlying thing in relation to a derivatives contract or a spot contract,

but does not include any arrangement, event, index, intangible property, tangible property or transaction that is, or that belongs to a class of arrangements, events, indices, intangible properties, tangible properties or transactions that is, prescribed by regulations made under section 341 not to be an underlying thing in relation to a derivatives contract or a spot contract; and

(b)

in relation to a financial benchmark —

(i)

an investment product as defined in section 2(1) of the Financial Advisers Act (Cap. 110);

(ii)

a commodity;

(iii)

a financial instrument;

(iv)

any intangible property or class of intangible properties; or

(v)

any arrangement, event or transaction that is, or that belongs to a class of arrangements, events or transactions that is, prescribed by regulations made under section 341 to be an underlying thing in relation to a financial benchmark,

but does not include any arrangement, event, intangible property or transaction that is, or that belongs to a class of arrangements, events, intangible properties or transactions that is, prescribed by regulations made under section 341 not to be an underlying thing in relation to a financial benchmark;

[Act 4 of 2017 wef 08/10/2018]

“unit” —

(a)

in relation to a collective investment scheme, means a right or interest (however described) in a collective investment scheme (whether or not constituted as an entity), and includes an option to acquire any such right or interest in the collective investment scheme; and

(b)

in relation to a business trust, has the same meaning as in section 2 of the Business Trusts Act (Cap. 31A);

“unitholder” —

(a)

in relation to a collective investment scheme, means a participant of the scheme; and

(b)

in relation to a business trust, means a person who holds a unit in the business trust;

[2/2009 wef 19/11/2012]

“user” means —

(a)

in relation to an approved exchange, a recognised market operator, an approved clearing house or a recognised clearing house, a person who is —

(i)

a member of the approved exchange, recognised market operator, approved clearing house or recognised clearing house (as the case may be); or

(ii)

a customer of a member of the approved exchange, recognised market operator, approved clearing house or recognised clearing house (as the case may be); or

[Act 4 of 2017 wef 08/10/2018]

(b)

in relation to a licensed trade repository or a licensed foreign trade repository, a person who is —

(i)

a participant of the licensed trade repository or licensed foreign trade repository; or

(ii)

a client of a participant of the licensed trade repository or licensed foreign trade repository;

[Act 34 of 2012 wef 01/08/2013]

“user information” means transaction information that is referable to —

(a)

a named user; or

(b)

a group of users, from which the name of a user can be directly inferred;

“voting share” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);

“voting unit” —

(a)

in relation to a business trust, means an issued unit in the business trust, other than —

(i)

a unit to which in no circumstances is there attached a right to vote; or

(ii)

a unit to which there is attached a right to vote only in one or more of the following circumstances:

(A)

during a period in which a distribution (or part of a distribution) in respect of the unit is in arrears;

(B)

upon a proposal to reduce the unitholders’ equity of the business trust;

(C)

upon a proposal that affects rights attached to the unit;

(D)

upon a proposal to wind up the business trust;

(E)

upon a proposal for the disposal of the whole of the property, business and undertakings of the business trust;

(F)

during the winding up of the business trust; and

(b)

in relation to a collective investment scheme, means an issued unit in the scheme, other than —

(i)

a unit to which in no circumstances is there attached a right to vote; or

(ii)

a unit to which there is attached a right to vote only in one or more of the following circumstances:

(A)

during a period in which a distribution (or part of a distribution) in respect of the unit is in arrears;

(B)

upon a proposal to reduce the participants’ funds of the scheme;

(C)

upon a proposal that affects rights attached to the unit;

(D)

upon a proposal to wind up the scheme;

(E)

upon a proposal for the disposal of the whole of the property, business and undertakings of the scheme;

(F)

during the winding up of the scheme.

[2/2009 wef 19/11/2012]

[16/2003; 5/2004; 31/2004; 1/2005; 5/2005]

(2) Any reference in this Act to the affairs of a corporation shall, unless the contrary intention appears, be construed as including a reference to —

(a)

the promotion, formation, membership, control, business, trading, transactions and dealings (whether alone or jointly with another person or other persons and including transactions and dealings as agent, bailee or trustee), property (whether held alone or jointly with another person or other persons and including property held as agent, bailee or trustee), liabilities (including liabilities owned jointly with another person or other persons and liabilities as trustee), profits and other income, receipts, losses, outgoings and expenditure of the corporation;

(b)

in the case of a corporation (not being a trustee corporation) that is a trustee (but without limiting the generality of paragraph (a)), matters concerned with the ascertainment of the identity of the persons who are beneficiaries under the trust, their rights under the trust and any payments that they have received, or are entitled to receive, under the terms of the trust;

(c)

the internal management and proceeding of the corporation;

(d)

any act or thing done (including any contract made and any transaction entered into) by or on behalf of the corporation, or to or in relation to the corporation or its business or property, at a time when —

(i)

a receiver, or a receiver and manager, is in possession of, or has control over, property of the corporation;

(ii)

the corporation is under judicial management;

(iii)

a compromise or arrangement referred to in section 210 of the Companies Act made between the corporation and another person or other persons is being administered; or

(iv)

the corporation is being wound up,

and without limiting the generality of sub-paragraphs (i) to (iv), any conduct of such a receiver or such a receiver and manager, or such a judicial manager, or any person administering such a compromise or arrangement or of any liquidator or provisional liquidator of the corporation;

(e)

the ownership of shares in, debentures of, units of shares in, units of debentures of, and units in a collective investment scheme issued by the corporation;

(f)

the power of persons to exercise, or to control the exercise of, the rights to vote attached to shares in the corporation or to dispose of, or to exercise control over the disposal of, such shares;

(g)

matters concerned with the ascertainment of the persons who are or have been financially interested in the success or failure, or apparent success or failure, of the corporation or are or have been able to control or materially to influence the policy of the corporation;

(h)

the circumstances under which a person acquired or disposed of, or became entitled to acquire or dispose of, shares in, debentures of, units of shares in, units of debentures of, or units in a collective investment scheme issued by, the corporation;

(i)

where the corporation has issued units in a collective investment scheme, any matters concerning the financial or business undertaking, scheme, common enterprise or investment contract to which the units in a collective investment scheme relate; or

(j)

matters relating to or arising out of the audit of, or working papers or reports of an auditor concerning, any matters referred to in paragraphs (a) to (i).

(3) Where the name of a corporation referred to in this Act is changed pursuant to the Companies Act (Cap. 50), the change of name shall not affect the identity of that corporation or the application of the relevant provisions of this Act or any other written law to that corporation.

(4) For the purposes of this Act, a person has a substantial shareholding in a corporation if —

(a)

he has an interest or interests in one or more voting shares (excluding treasury shares) in the corporation; and

(b)

the total votes attached to that share, or those shares, is not less than 5% of the total votes attached to all the voting shares (excluding treasury shares) in the corporation.

[2/2009 wef 19/11/2012]

(5) For the purposes of this Act, a person has a substantial shareholding in a corporation, being a corporation the share capital of which is divided into 2 or more classes of shares, if —

(a)

he has an interest or interests in one or more voting shares (excluding treasury shares) in one of those classes; and

(b)

the total votes attached to that share, or those shares, is not less than 5% of the total votes attached to all the voting shares (excluding treasury shares) in that class.

[2/2009 wef 19/11/2012]

(6) For the purposes of this Act, a person who has a substantial shareholding in a corporation is a substantial shareholder in that corporation.

3.—(1) Unless the context otherwise requires, any reference in this Act to a person associated with another person shall be construed as a reference to —

(a)

where the other person is a corporation —

(i)

a director or secretary of the corporation;

(ii)

a related corporation; or

(iii)

a director or secretary of such a related corporation;

(b)

where the matter to which the reference relates is the extent of a power to exercise, or to control the exercise of, the voting power attached to voting shares in a corporation, a person with whom the other person has, or proposes to enter into, an agreement, arrangement, understanding or undertaking, whether formal or informal, or express or implied —

(i)

by reason of which either of those persons may exercise, directly or indirectly, control the exercise of, or substantially influence the exercise of, any voting power attached to a share in the corporation;

(ii)

with a view to controlling or influencing the composition of the board of directors, or the conduct of affairs, of the corporation; or

(iii)

under which either of those persons may acquire from the other of them shares in the corporation or may be required to dispose of such shares in accordance with the directions of the other of them,

except that, in relation to a matter relating to shares in a corporation, a person may be an associate of the corporation and the corporation may be an associate of a person;

(c)

a person with whom the other person is acting, or proposes to act, in concert in relation to the matter to which the reference relates;

(d)

where the matter to which the reference relates is a matter, other than the extent of a power to exercise, or to control the exercise of, the voting power attached to voting shares in a corporation —

(i)

subject to subsection (2), a person who is a director of a corporation of which the other person is a director; or

(ii)

a trustee of a trust in relation to which the other person benefits or is capable of benefiting otherwise than by reason of transactions entered into in the ordinary course of business in connection with the lending of money;

(e)

a person with whom the other person is, according to any subsidiary legislation made under this Act, to be regarded as associated in respect of the matter to which the reference relates;

(f)

a person with whom the other person is, or proposes to become, associated, whether formally or informally, in any other way in respect of the matter to which the reference relates; or

(g)

where the other person has entered into, or proposes to enter into, a transaction, or has done, or proposes to do, any other act or thing, with a view to becoming associated with a person as referred to in paragraph (a), (b), (c), (d), (e) or (f), that last-mentioned person.

(2) Where, in any proceedings under this Act, it is alleged that a person referred to in subsection (1)(d)(i) was associated with another person at a particular time, that the first-mentioned person shall not be considered to be so associated in relation to a matter to which the proceedings relate unless the person alleging the association proves that the first-mentioned person at that time knew or ought reasonably to have known the material particulars of that matter.

(3) A person shall not be taken to be associated with another person by virtue of subsection (1)(b), (c), (e) or (f) by reason only of one or more of the following:

(a)

that one of those persons furnishes advice to, or acts on behalf of, the other person in the proper performance of the functions attaching to his professional capacity or to his business relationship with the other person;

(b)

that one of those persons, a customer, gives specific instructions to the other, whose ordinary business includes dealing in capital markets products, to acquire shares on the customer’s behalf in the ordinary course of that business;

[Act 4 of 2017 wef 08/10/2018]

(c)

that one of those persons has sent, or proposes to send, to the other a take-over offer, or has made, or proposes to make, offers under a take-over announcement, within the meaning of the Take-over Code, in relation to shares held by the other;

(d)

that one of those persons has appointed the other, otherwise than for valuable consideration given by the other or by an associate of the other, to vote as a proxy or representative at a meeting of members, or of a class of members, of a corporation.

[SIA, s. 3; Aust. Corporations, s. 12 (2) and s. 16 (1)]

Interest in securities, securities-based derivatives contracts or units in a collective investment scheme

4.—(1) Subject to this section, a person has an interest in securities, securities-based derivatives contracts or units in a collective investment scheme, if the person has authority (whether formal or informal, or express or implied) to dispose of, or to exercise control over the disposal of, those securities, securities-based derivatives contracts or units in a collective investment scheme (as the case may be).

[Act 4 of 2017 wef 08/10/2018]

(2) For the purposes of subsection (1), it is immaterial that the authority of a person to dispose of, or to exercise control over the disposal of, particular securities, securities-based derivatives contracts or units in a collective investment scheme (as the case may be) is, or is capable of being made, subject to restraint or restriction.

[Act 4 of 2017 wef 08/10/2018]

(3) Where any property held in trust consists of or includes securities, securities-based derivatives contracts or units in a collective investment scheme, and a person knows, or has reasonable grounds for believing, that the person has an interest under the trust, the person is treated as having an interest in those securities, securities-based derivatives contracts or units in a collective investment scheme (as the case may be).

[Act 4 of 2017 wef 08/10/2018]

(4) A person is treated as having an interest in a security, securities-based derivatives contract or unit in a collective investment scheme if a corporation has, or is by the provisions of this section (apart from this subsection) treated as having, an interest in that security, securities-based derivatives contract or unit in a collective investment scheme (as the case may be) and —

(a)

the corporation is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the person; or

(b)

the person has a controlling interest in the corporation.

[Act 4 of 2017 wef 08/10/2018]

(5) A person is treated as having an interest in a security, securities-based derivatives contract or unit in a collective investment scheme if —

(a)

a corporation has, or is by the provisions of this section (apart from this subsection) treated as having, an interest in that security, securities-based derivatives contract or unit in a collective investment scheme (as the case may be); and

(b)

the person, the associates of the person, or the person and the person’s associates are entitled to exercise or control the exercise of not less than 20% of the votes attached to the voting shares in the corporation.

[Act 4 of 2017 wef 08/10/2018]

(6) For the purposes of subsection (5), a person is an associate of another person if the first-mentioned person is —

(a)

a subsidiary of that other person;

(b)

a person who is accustomed or is under an obligation whether formal or informal to act in accordance with the directions, instructions or wishes of that other person in relation to the security, securities-based derivatives contract or unit in a collective investment scheme (as the case may be) referred to in subsection (5); or

[Act 4 of 2017 wef 08/10/2018]

(c)

a corporation that is, or a majority of the directors of which are, accustomed or under an obligation whether formal or informal to act in accordance with the directions, instructions or wishes of that other person in relation to that security, securities-based derivatives contract or unit in a collective investment scheme (as the case may be).

[Act 35 of 2014 wef 01/07/2015]

[Act 4 of 2017 wef 08/10/2018]

(7) A person is treated as having an interest in a security, securities-based derivatives contract or unit in a collective investment scheme in any one or more of the following circumstances:

(a)

where the person has entered into a contract to purchase the security, securities-based derivatives contract or unit in a collective investment scheme (as the case may be);

(b)

where the person has a right, otherwise than by reason of having an interest under a trust, to have the security, securities-based derivatives contract or unit in a collective investment scheme (as the case may be), transferred to the person or to the person’s order, whether the right is exercisable presently or in the future and whether on the fulfilment of a condition or not;

(c)

where the person has the right to acquire any of the following under an option, whether the right is exercisable presently or in the future and whether on the fulfilment of a condition or not:

(i)

the security, securities-based derivatives contract or unit in a collective investment scheme (as the case may be);

(ii)

an interest in the security, securities-based derivatives contract or unit in a collective investment scheme (as the case may be);

(d)

where the person is entitled, otherwise than by reason of the person having been appointed a proxy or representative to vote at a meeting of members of a corporation or of a class of its members, to exercise or control the exercise of a right attached to any of the following (as the case may be):

(i)

the security, not being a security of which the person is a registered holder;

(ii)

the securities-based derivatives contract, not being a contract to which the person is a party;

(iii)

the unit in a collective investment scheme, not being a unit of which the person is a registered holder.

[Act 4 of 2017 wef 08/10/2018]

(8) A person is treated as having an interest in a security, securities-based derivatives contract or unit in a collective investment scheme if that security, securities-based derivatives contract or unit in a collective investment scheme (as the case may be) is held jointly by the person with another person.

[Act 4 of 2017 wef 08/10/2018]

(9) For the purpose of determining whether a person has an interest in a security, securities-based derivatives contract or unit in a collective investment scheme, it is immaterial that the interest cannot be related to a particular security, securities-based derivatives contract or unit in a collective investment scheme (as the case may be).

[Act 4 of 2017 wef 08/10/2018]

(10) The following interests are to be disregarded:

(a)

an interest in a security, securities-based derivatives contract or unit in a collective investment scheme if the interest is that of a person who holds the security, securities-based derivatives contract or unit in a collective investment scheme (as the case may be) as bare trustee;

(b)

an interest in a security, securities-based derivatives contract or unit in a collective investment scheme if —

(i)

the interest is that of a person whose ordinary business includes the lending of money; and

(ii)

the person holds the interest only by way of security for the purposes of a transaction entered into in the ordinary course of business in connection with the lending of money;

(c)

an interest of a person in a security, securities-based derivatives contract or unit in a collective investment scheme if that interest is an interest held by the person by reason of the person holding a prescribed office;

(d)

an interest of a company in its own securities if that interest is purchased or otherwise acquired in accordance with sections 76B to 76G of the Companies Act (Cap. 50);

(e)

a prescribed interest in a security, securities-based derivatives contract or unit in a collective investment scheme being an interest of such person, or of the persons included in such class of persons, as may be prescribed;

(f)

for the purposes of Part VII, an interest in a securities-based derivatives contract the obligations under which are to be discharged by one party to the other at some future time by cash settlement only.

[Act 4 of 2017 wef 08/10/2018]

(11) An interest in a security, securities-based derivatives contract or unit in a collective investment scheme shall not be disregarded by reason only of —

(a)

its remoteness;

(b)

the manner in which it arose; or

(c)

the fact that the exercise of a right conferred by the interest is, or is capable of being made subject to restraint or restriction.

whose net personal assets exceed in value $2 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount;

(B)

whose financial assets (net of any related liabilities) exceed in value $1 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount, where “financial asset” means —

(BA)

a deposit as defined in section 4B of the Banking Act;

(BB)

an investment product as defined in section 2(1) of the Financial Advisers Act; or

(BC)

any other asset as may be prescribed by regulations made under section 341; or

(C)

whose income in the preceding 12 months is not less than $300,000 (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount;

[Act 4 of 2017 wef 08/10/2018]

(ii)

a corporation with net assets exceeding $10 million in value (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe, in place of the first amount, as determined by —

(A)

the most recent audited balance-sheet of the corporation; or

(B)

where the corporation is not required to prepare audited accounts regularly, a balance-sheet of the corporation certified by the corporation as giving a true and fair view of the state of affairs of the corporation as of the date of the balance-sheet, which date shall be within the preceding 12 months;

(iii)

the trustee of such trust as the Authority may prescribe, when acting in that capacity; or

(iv)

such other person as the Authority may prescribe;

(b)

“expert investor” means —

(i)

a person whose business involves the acquisition and disposal, or the holding, of capital markets products, whether as principal or agent;

(ii)

the trustee of such trust as the Authority may prescribe, when acting in that capacity; or

(iii)

such other person as the Authority may prescribe;

(c)

“institutional investor” means —

(i)

the Government;

(ii)

a statutory board as may be prescribed by regulations made under section 341;

(iii)

an entity that is wholly and beneficially owned, whether directly or indirectly, by a central government of a country and whose principal activity is —

(A)

to manage its own funds;

(B)

to manage the funds of the central government of that country (which may include the reserves of that central government and any pension or provident fund of that country); or

(C)

to manage the funds (which may include the reserves of that central government and any pension or provident fund of that country) of another entity that is wholly and beneficially owned, whether directly or indirectly, by the central government of that country;

(iv)

any entity —

(A)

that is wholly and beneficially owned, whether directly or indirectly, by the central government of a country; and

(B)

whose funds are managed by an entity mentioned in sub-paragraph (iii);

(v)

a central bank in a jurisdiction other than Singapore;

(vi)

a central government in a country other than Singapore;

(vii)

an agency (of a central government in a country other than Singapore) that is incorporated or established in a country other than Singapore;

(viii)

a multilateral agency, international organisation or supranational agency as may be prescribed by regulations made under section 341;

(ix)

a bank that is licensed under the Banking Act (Cap. 19);

(x)

a merchant bank that is approved as a financial institution under section 28 of the Monetary Authority of Singapore Act (Cap. 186);

(xi)

a finance company that is licensed under the Finance Companies Act (Cap. 108);

(xii)

a company or co-operative society that is licensed under the Insurance Act (Cap. 142) to carry on insurance business in Singapore;

(xiii)

a company licensed under the Trust Companies Act (Cap. 336);

(xiv)

a holder of a capital markets services licence;

(xv)

an approved exchange;

(xvi)

a recognised market operator;

(xvii)

an approved clearing house;

(xviii)

a recognised clearing house;

(xix)

a licensed trade repository;

(xx)

a licensed foreign trade repository;

(xxi)

an approved holding company;

(xxii)

a Depository as defined in section 81SF;

(xxiii)

an entity or a trust formed or incorporated in a jurisdiction other than Singapore, which is regulated for the carrying on of any financial activity in that jurisdiction by a public authority of that jurisdiction that exercises a function that corresponds to a regulatory function of the Authority under this Act, the Banking Act (Cap. 19), the Finance Companies Act (Cap. 108), the Monetary Authority of Singapore Act (Cap. 186), the Insurance Act (Cap. 142), the Trust Companies Act (Cap. 336) or such other Act as may be prescribed by regulations made under section 341;

(xxiv)

a pension fund, or collective investment scheme, whether constituted in Singapore or elsewhere;

(xxv)

a person (other than an individual) who carries on the business of dealing in bonds with accredited investors or expert investors;

(xxvi)

the trustee of such trust as the Authority may prescribe, when acting in that capacity; or

(xxvii)

such other person as the Authority may prescribe.

[Act 4 of 2017 wef 08/10/2018]

[1/2005; 11/2005]

(1A) In determining the value of an individual’s net personal assets for the purposes of subsection (1)(a)(i)(A), the value of the individual’s primary residence —

(a)

is to be calculated by deducting any outstanding amounts in respect of any credit facility that is secured by the residence from the estimated fair market value of the residence; and

(b)

is taken to be the lower of the following:

(i)

the value calculated under paragraph (a);

(ii)

$1 million.

[Act 4 of 2017 wef 08/10/2018]

(2) The definitions in subsection (1) may be subject to such modifications as the Authority may prescribe for any specified provision of this Act.

[1/2005]

Application

4B. This Act does not apply to a person in respect of whom a transitional approval or transitional licence mentioned in section 66 of the Commodity Trading Act (Cap. 48A) is in force, to the extent that the activities carried out by the person are regulated under, and authorised by, that section.